Quantum Extends Sequential Sales Streak and Non-GAAP Profit

The Tip Desk · November 9, 2026 · 3 min read

Fiscal second-quarter revenue reached $89.6 million, up 42.9% from a year earlier, as the company posted a second straight quarter of non-GAAP profit.

Quantum Corporation (QMCO), the secondary-storage vendor, reported fiscal second-quarter 2027 revenue of $89.6 million, up 42.9% from $62.7 million a year earlier and 11% from $80.8 million in the prior quarter. The year-over-year pace accelerated from 26% growth in the fiscal first quarter and 27% in the fiscal fourth quarter of 2026. Chief Executive Officer Hugues Meyrath said the quarter marked a fourth consecutive period of sequential revenue growth and a second quarter of non-GAAP profitability, with demand across the secondary storage portfolio.

GAAP gross profit was $36.7 million, or 41.0% of revenue, compared with $23.6 million, or 37.6%, a year earlier. Sequentially, the margin was 170 basis points above the 39.3% recorded in the fiscal first quarter. Product revenue was $62.6 million; service and subscription revenue was $25.0 million and royalty revenue $2.0 million.

GAAP operating expenses were $29.9 million, or 33.4% of revenue. Non-GAAP adjusted operating expenses were $26.9 million. GAAP net loss was $44.8 million, or ($1.14) a share, including a $51.6 million non-cash charge from the change in fair value of warrant liabilities. Excluding that warrant item, special project costs and stock-based compensation, non-GAAP adjusted net income was $9.8 million, or $0.25 a share, after $4.0 million, or $0.18 a share, in the fiscal first quarter. Non-GAAP adjusted EBITDA was $11.1 million, after $8.0 million in the prior quarter and $1.0 million in the fiscal fourth quarter of 2026.

Meyrath said tape remained the most consistent growth driver, with hyperscale tape demand increasing more than 2.6 times year-over-year as customers addressed AI-driven infrastructure strain. The company said it ended the quarter with a record backlog of nearly $100 million, secured a major hyperscale Scalar i7 Raptor purchase order after a multi-year evaluation, and closed the largest ActiveScale Cold Storage order in company history, nearly doubling core transactions above $500,000. Supply constraints continued to affect shipment timing in certain areas, the company said, while improved ability to secure disk drives allowed it to fulfill previously delayed orders as demand remained ahead of available supply.

Cash, cash equivalents and restricted cash were $67.5 million at September 30, 2026, compared with $54.6 million at June 30, 2026. The company had no outstanding debt at quarter-end and incurred no interest expense in the quarter. Common shares outstanding were 39.5 million at September 30, 2026, compared with 14.6 million at March 31, 2026.

For the fiscal third quarter of 2027, Quantum guides to revenue of $91.0 million, plus or minus $2 million; non-GAAP adjusted operating expenses of $28 million, plus or minus $1 million; non-GAAP adjusted basic net income of $0.20 a share, plus or minus $0.10; and non-GAAP adjusted EBITDA of $9.1 million, plus or minus $1 million. The outlook assumes an effective annual tax rate of 3% and an average basic share count of approximately 39.5 million.